Highly leveraged financing structures are very risky. They can be a generator of a economic value one side, but a true night mare on the other side – if the risks are not well though through. Read about the key areas we considered on the case of a leverage buyout (LBO).
It is required from the valuation practitioners to truly understand the business, critically judge current performance and eventual future developments as well as the potential. The valuation process, the assumptions used and value generation truly need to be well thought through when valuing a company.